CEPSA ANNOUNCES FIRST-QUARTER 2012 EARNINGS
1 - SUMMARYClean CCS net income in 1Q2012 totaled €101.3 million,
slightly lower by -1% from the year before.Clean CCS EBIT in the 3-month period amounted to €214.0
million, climbing 5% from the figure posted in the same
quarter of 2011.
Clean CCS EBITDA stood at €382.7 million, up 5% from
1Q2011.
- In the Exploration & Production segment, EBIT rose
21% from a year ago, primarily attributable to the 13%
increase in crude oil prices.
-
Refining margins continued to be notably weak
throughout most of the first quarter, evidencing a sharp
fall in February and a rebound at the end of March which
has carried on into April. Marketing margins were likewise
hampered by market conditions although CEPSA's sales
grew 1.5% in the period. In this environment, downstream
EBIT slid 21% from the figure posted in the first quarter
of 2011.
-
In the Petrochemicals segment, a less auspicious
outlook for growth eroded margins compared to favorable
performance in 2011, leading to a 19% drop in EBIT
year-on-year. However the figure for 1Q2012 was higher by
66.7% from the preceding quarter
-
The increase in the electricity pool price (+12%),
higher sales and MEDGAZ activity drove Gas & Power EBIT up
29% from the year before.
2 - KEY EARNINGS FIGURES
RESULTSMillions of euros |
1Q12 |
4Q11 |
1Q11 |
% s/ 4Q11 |
% s/ 1Q11 |
EBITDA |
528,3 |
442,6 |
502,6 |
19,4% |
5,1% |
Clean CCS EBITDA |
382,7 |
373,6 |
363,5 |
2,4% |
5,3% |
EBIT |
361,1 |
193,3 |
342,7 |
86,8% |
5,4% |
Clean CCS EBIT |
214,0 |
167,5 |
203,6 |
27,8% |
5,1% |
Net Income |
204,7 |
79,8 |
199,7 |
156,5% |
2,5% |
Clean CCS Net Income |
101,3 |
64,8 |
102,4 |
56,3% |
-1,1% |
CEPSA posted an IFRS net income, using the average cost
method of accounting, of €204.7 million in the first quarter
of 2012, up +2.5% from the €199.7 million recorded in the
same period of 2011 and +156.5% from 4Q2011.
Factoring out the effect of inventory price variations
and other non-recurring item s, which stood at €103.4 million
in 2012 and at €97.3 million in 2011, Clean CCS net income
for the three-month period totaled €101.3 million, slightly
down by -1% from the figure of €102.4 million posted in 1
Q2011 but +56.3% from 4Q2011.
3 - INFORMATION BY BUSINESS SEGMENTS
Exploration & ProductionCEPSA's crude oil production from its working
interests in 1Q2012 totaled 115.2 kb /d, dropping -6.1% from a
year ago, as a result of lower output from Algeria chiefly on
account of scheduled maintenance shutdowns. The Company's
net entitlement in the period, understood to be the amount assi
gned to it after applying contractual conditions and before
paying taxes, amounted to 47.4 kb/d, lightly lower by 1% from
2011, since the negative impact of higher crude oil prices and
their effect on production-sharing contracts in Algeria was
partly offset by greater output in Colombia.Crude oil sales amounted to 2.8 million barrels, more
than the 2.3 million barrels sold in 2011, while sales
revenues in dollars were up 36.7%.
Throughout the quarter, CEPSA carried on developing its
exploration activities with preparatory work for the
performance of seismic and drilling campaigns in the Rhourde
er Rouni II exploration block in Algeria and with long-term
testing to confirm the commercial feasibility of three blocks
in Colombia.
Clean CCS EBIT from upstream operations stood at €137.1
million, rising €23.4 million (+21%) from the figure posted
in the same period of 2011, driven by the upward trend in
crude oil prices.
Refining & MarketingRefinery output in 1Q2012 stood at 5.9 million tons,
rising 7.3% in the year-on-year comparison. Product sales
amounted to 6.8 million tons, up 1.5% from the same period of
2011.Despite these increases in output and sales, lower
refining margins weighed on Clean CCS EBIT in the period,
which totaled €25.3 million, falling €6.6 million (-20.7%)
from the figure posted in the same quarter of 2011.
PetrochemicalsPetrochemical sales activity in the first quarter of 2012
was in line with the same period of 2011 and 4.4% lower than in
the previous quarter.Worse performance in PTA/PIA/PET activities and to a
lesser extent in Phenol/Acetone placed Clean CCS EBIT at €40
million in 1Q2012, down 18.7% from the figure of €49.2
million poste d in the same quarter of 2011. The figure for
this first quarter of the year was however higher by 66.7%
from the preceding quarter.
Gas & PowerElectric power sales in the period stood at 1,039 GWh,
climbing 11.9% from the previous year. The electricity pool
price was likewise higher (+12%) than in the same period of
2011. As for natural gas marketing, sales totaled 8,405 GWh in
1Q2012, with activity jumping 37% vis-à-vis the same period o f
2011.This increase in activity and price led to a Clean CCS
EBIT of €11.5 million in th e quarter, evidencing an
improvement of 29% from a year ago.
GLOSSARY OF TERMS
# Crude oil entitlement: CEPSA's entitlement to the
production from a field, after applying contractual
conditions and before paying taxes.
# Production from working interests: CEPSA's share
of production from its working interest in the field, before
applying contractual conditions and paying taxes.
# EBITDA (Earnings before interest, taxes, depreciation
& amortization) = Gross income - operating expenses + income
from logistical affiliates carried by equity method.
# EBIT (Operating Income) = EBITDA, depreciation and
amortization, capital grants, impairment of current assets,
impairment of tangible assets and operating
provisions.
# PTA/PIA/PET - PTA (Purified Terephthalic Acid) PIA
(Purified Isophthalic Acid), PET (Polyethylene Terephtalate).
Raw materials for manufacturing PET packaging, powdered paint
and unsaturated polyester resins
# NET INCOME (IFRS) = The CEPSA Group´s consolidated
financial statements are prepared using International Fina
ncial Reporting Standards (IFRS). Net Income is Income
attributable to shareholders of the parent company,
equivalent to Operating income - net financiall income,
non-operating provisions, other income and expenses,
corporate income tax and minority interests.
# CLEAN CCS NET INCOME = Results according IFRS applies
the weighted average cost method of accounting to iinventory
valuation. However, as a more meaningful indicator of
profitability and bottom-line performance in its major
segments, CEPSA, as is the case with other companies in oil
industry, adjusts its earnings to eliminate the effect on the
Company's assets from price fluctuations in crude and
refined products i nventories that are required both for
legal (minimum security stocks) and operational reasons.
(Clean CCS - Clean Current Costs of Supplies).
# Kb/d - Thousands of barrels per day
Disclaimer
COMPAÑÍA ESPAÑOLA DE PETRÓLEOS, S.A.U. (CEPSA), with
registered offices at Avenida del Partenón, 12, 28042 -Madrid
(Spain) and corporate tax ID number A28003119, and its Group
of Companies, have disclosed the results of their businesses
through this document merely for information purposes and to
comply with legislation in force.
As the earnings figures contained herein have not been
audited, CEPSA makes no warranty, representation or guarantee
of any kind that this information is complete, accurate
and/or entirely up-to-date. Any use of the information
included in this document for purposes other than those for
which it is intended is strictly forbidden. CEPSA shall not
be held responsible or liable for any consequential loss or
damage incurred by persons using the contents of this
document for purposes other than those expressly set forth
above.
CEPSA reserves itself all copyright and other
intellectual property rights on the text, graphics, images,
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this document. CEPSA does not grant any license or permission
of any kind on the aforementioned copyright and intellectual
property rights.
Any violation or infringement of the terms and
conditions set out above may result in legal action,
including any appropriate administrative, civil and/or
criminal proceedings as may be warranted.
Madrid, May 17th, 2012
CEPSA - Communications & Institutional Relations
Division
www.cepsa.com
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